UPDATE: Russell McVeagh has advised Commonwealth Bank of Australia (CBA) on the sale of Sovereign to AIA International Limited (AIA) for AU$1.275 billion.
AIA Group has announced that AIA International Limited has successfully completed its acquisition of Sovereign on 2 July.
As announced in September last year, AIA has entered into a 20-year strategic distribution agreement with ASB Bank.
AIA Group Regional Chief Executive, Bill Lisle, said the acquisition is set to “significantly transform and expand our presence in New Zealand”.
“We expect it will deliver a highly positive outcome for our customers, partners and advisers here, as well as our fantastic team of employees,” he said.
Lisle added: “This deal represents only the beginning of our long-term vision in New Zealand.
“We are committed to helping as many people as possible to live healthier, longer, better lives, through our market- leading programs such as AIA Vitality and our Rehabilitation and Return to Work program.”
He noted the long-term partnership with ASB presented a significant opportunity for AIA in New Zealand.
“We are confident that ASB’s distribution network, combined with AIA’s regional bancassurance capabilities and life insurance product expertise, will deliver strong insurance propositions for our customers,” Lisle said.
AIA New Zealand and Sovereign will continue to operate under their respective brands for the immediate future and until a long-term brand strategy is announced.
Both AIA and Sovereign will continue to sell their respective products in the near term.